When it comes to the importance of digital data in sustainability reporting versus annual reporting, digital data plays a particular key role in sustainability reporting for several reasons.

It allows for more accurate and transparent measurement of environmental, social, and governance (ESG) performance. It enables companies to engage and meet the expectations of their stakeholders.

With all the available digital data the digital first approach (digital responsive reporting) is the only way to approach sustainability reporting. Without a format that can hold the digital data, there is no affective way in accessing or sharing the data and content of the sustainability report with stakeholders.

Reasons why digital reporting is key:

• Measurement of ESG Metrics: It allows for the measurement of the more extensive range of metrics related to ESG reporting, providing a detailed and comprehensive view of a company’s sustainability performance.
• Monitoring and Updates: Enables real-time monitoring and updates, allowing companies to respond quickly to changes, address issues promptly, and demonstrate ongoing commitment to their sustainable practices.
• Complexity of Sustainability Data: Sustainability reporting involves complex and interconnected data points, covering diverse areas such as carbon emissions, social impact, supply chain sustainability, and more. Digital tools help with the management and analysis of this complex data, making it easier to derive meaningful insights and communicate them effectively with stakeholders.
• Stakeholder Expectations: Stakeholders, have increasingly high expectations for transparency and accountability in a company’s sustainability practices and reporting. Digital data offers an interactive and engaging way for stakeholders to explore and understand the data.
• Demonstrating Continuous Improvement: Digital data allows companies to track progress over time, set meaningful targets, and demonstrate their commitment to sustainability goals.